Roth MKM’s AI & Non-AI Stocks To Be Cautious About: 15 Stocks Bank With $60 Billion Capital Raise Is Watching

8. Texas Instruments Incorporated (NASDAQ:TXN)

Number of Hedge Fund Holders In Q3 2024: 57

Texas Instruments Incorporated (NASDAQ:TXN) is an American chip manufacturing company that is one of the oldest of its kind. The firm makes and sells chips such as signal processing and power management products. These items are crucial in the proper functioning of the consumer electronics and information technology industries – along with playing key roles in artificial intelligence data centers. Consequently, despite Texas Instruments Incorporated (NASDAQ:TXN)’s exposure to the broader non-AI industry, the shares are up 17% year-to-date. As of H1 2024, 76% of the firm’s revenue came from its Analog business division which also sells products to industrial firms. Therefore, the broader economic recovery is key for Texas Instruments Incorporated (NASDAQ:TXN)’s stock to generate sizable tailwinds despite the firm’s exposure to the AI and technology industry.

The London Company mentioned Texas Instruments Incorporated (NASDAQ:TXN) in its Q2 2024 investor letter. Here is what the fund said:

“Texas Instruments Incorporated (NASDAQ:TXN) – TXN rallied in 2Q despite declining revenue in its latest update. TXN is beginning to see some encouraging signs of destocking nearing an end and some sub segments of the market are experiencing improving demand. TXN continued to spend on capex and should begin to see positive benefits to cash flow next year from the CHIPS Act.”